Home Tax Credit Deadline Extension May Be Dead

Washington, DC, June 28, 2010--A measure that would have extended the amount of time that buyers have to close on house purchases in order to claim a federal tax credit got stalled in the Senate last week.

The amendment to extend the deadline was part of the larger American Jobs and Closing Tax Loopholes Act of 2010.

The Senate could not get enough votes to end debate on the bill on Thursday. Even if the bill passes the Senate, it also still needs House approval.

The National Association of Realtors has estimated that a potential 180,000 otherwise qualified home buyers will miss out on the credit for not closing by the June 30 deadline. For some buyers, a clogged pipeline of mortgage applications is between them and the closing table.

To qualify for the credit of up to $8,000, eligible home buyers needed to have a contract in place by April 30 and need to close on the sale by June 30. The Senate amendment would have extended that closing deadline through September.